Contrary to expectations, the company reported adjusted loss per share of 41 cents for the quarter; which beat consensus estimates by a margin of 8.7 cents. For its part, Penney did succeed in posting better sales and cutting further into its losses, but there’s still work for the company to do in the future.
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Rich Duprey owns shares of J.C. Penney Company, Inc.
J.C. Penney store in Stonebriar Centre in Frisco. ( JCP ) reported a second quarter net loss of $138 million or $0.45 per share, compared to a loss of $172 million or $0.56 per share, prior year. So did a 4.1 percent increase in same store sales.
In this Friday, July 10, 2015 photo, a vehicle drives through an empty JC Penney department store parking lot at the Hanover Mall in Hanover, Mass. J.C. Penney Co. reports quarterly financial results on Friday, August 14, 2015. It sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora inside jcpenney and home furnishings. And while all regions showed increases, gains were strongest in the western and central regions.
Marvin Ellison, chief executive officer said, “We are pleased to report another quarter of improved performance thanks to the commitment and diligence of the JCPenney team”.
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Penney also took favorable steps with some of its guidance for the full 2015 fiscal year. EBITDA rose by $25 million to $115 million in the latest quarter. Both companies reported sales and profit below analysts’ estimates this week.Sales at J.C. Penney stores open more than a year rose 4.1 percent, above the 3.9 percent expected by analysts polled by research firm Consensus Metrix.J.C. Penney’s sales have been improving since the company abandoned its attempt to move upmarket in 2013, reintroducing traditional discounts and focusing on a narrower set of products. The better-than-expected results are not the only impetus to spur investors’ interest. The retailer boosted its estimate of overhead cost reductions by $20 million to a total of $120 million. Management also maintained their projection of a 4% to 5% increase in comparable same store sales. In Friday’s premarket session, shares traded up about 1.6%, at $8.23 in a 52-week range of $5.90 to $11.30.
